Medicare Part A is free for most people. If you elect to choose Part B as well, then you'll have to pay a monthly premium. If you are already collecting benefits from the Social Security Administration, the Railroad Retirement Board or the Office of Personnel Management, then your Part B premium will automatically be deducted from your monthly benefits. If you are not receiving any of these forms of income, then you will get a bill. Have questions about Medicare? Click here. Most people will pay the standard premium amount. If your modified adjusted gross income is above a certain amount, you may pay an Income Related Monthly Adjustment Amount (IRMAA). Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago. This is the most recent tax return information provided to Social Security by the IRS. The standard Part B premium amount in 2020 is $144.60. Most people pay the standard Part B premium amount. If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you'll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium. In 2020, you pay $198 for your Part B deductible. After you meet your deductible for the year, you typically pay 20% of the Medicare-approved amount for the following supplies and services:Cost of Medicare Part B
How Is My Medicare Part B Cost Calculated?
Income Related Monthly Adjustment Amount (IRMAA)
Part B Deductible and Coinsurance
How Much Is Medicare for Part B? FAQs
Medicare is a publicly-available health insurance program run by the U.S. government.
The standard monthly premium rate for Medicare Part B in 2021 is $148.50.
Yes, you may have to pay an annual deductible of $203 and a 20% coinsurance after your deductible has been met.
You can pay your Medicare Part B premiums by having the amount deducted directly from your Social Security benefits or through direct payment from your bank account or credit card.
Yes, some people may qualify for help with Medicare Part B premiums. Medicaid or other state-sponsored programs may be able to assist with Medicare Part B premiums.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.
